Crude moved into the first Sell Zone yesterday, entry criteria triggered and entered a trade that took over 100 ticks, that’s $1000.00 per lot traded. The retest trade was good for 50 ticks also. The Sell Zone has just set up another sell trade, however as this is the third entry, tight stops in place for a breakeven exit if momentum does not pick up to the downside.
Crude continues to rally from our Buy Zone posted on 23rd 200 ticksto date. We would expect some exhaustion soon and although this could happen here around 104.00, we prefer the Sell Zones as per below. If price enters these zones we will apply our entry criteria for specific trade entry.
Crude oil dropped straight through the first Buy Zone today, only to pause for just a little to acknowledge the area. The bears kept up enough momentum for our entry criteria not to be triggered. We were then looking for price to head lower, and as posted this morning, higher probability trade area of the day. Price pin pointed the low of our Buy Zone with price confirming a long entry and running up currently 100 ticks.
